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Price ups his support in PaperlinX battle

Monday, 20 February 2012
By Print 21 Online Article

The campaign to dislodge Harry Boon from the chair of PaperlinX received a boost with major shareholder Orbis Investment Management committing to support Andrew Price for the job.
The move follows an initial conditional offer from the fund manager as reported by Print21. It comes ahead of the release tomorrow of interim results by the troubled paper merchant.

According to a report in the AFR, Simon Marais, managing director, Orbis said that if it came to a showdown between Boon and Price he would use his 18.2 % shareholding to vote for change. It still is not enough to get over the 50% required to dislodge the Melbourne-based chairman, but the support of the fund manager is a shot in the arm for the campaign.

Price claims the Orbis decision will encourage other shareholders to join his insurgency. He believes his willingness to invest his own money in the company is a singular differentiation between himself and the chairman.

He remains confident of getting the numbers by the March23 general meeting called by his supporting group. Price and his supporters control just over the five per cent required to demand a special meeting to vote on the chairman’s tenure.

The PaperlinX board continues to back its man and express its confidence in his handling of the ongoing negoiations with an un named US-based private equity fund.

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